Neighborhood Centers Inc. v. Doreatha Walker

544 S.W.3d 744
Texas Supreme Court·Decided April 13, 2018·No. 16-0897·Published·Cited by 12 cases

Opinions

Chief Justice Hecht delivered the opinion of the Court.

The Texas Whistleblower Act (the "WBA") prohibits what it defines as a "local governmental entity", including a public school district, from retaliating against an employee for reporting a violation of law by the employer.1 The WBA allows the employee to sue for damages and other relief2 and waives the employer's immunity "to the extent of liability for the relief allowed".3 The Texas Charter *746Schools Act (the "CSA") authorizes the Commissioner of Education to grant eligible entities-usually private, tax-exempt nonprofits-charters to operate open-enrollment schools4 as "part of the public school system of this state."5 The question before us is whether the WBA applies to an open-enrollment charter school operated by a tax-exempt entity. The answer ultimately turns on the proper interpretation of Section 12.1058(c) of the CSA, which provides that "an open-enrollment charter school operated by a tax exempt entity ... is not considered to be a ... local governmental entity unless the applicable statute specifically states that the statute applies to an open-enrollment charter school."6 Because the WBA contains no such specific statement, we hold that it does not apply to open-enrollment charter schools and therefore reverse the judgment of the court of appeals7 and render judgment for petitioner.

I

Petitioner Neighborhood Centers Inc. is a private, nonprofit corporation that for more than a century has provided charitable services to low-income communities in Houston, including Head Start, workforce career centers, meals and programs for seniors, immigration services, free tax preparation services, and a community credit union.8 Neighborhood Centers also operates Promise Community School (collectively, the "School"), an open-enrollment charter school that provides tuition-free public education to students on multiple campuses.

The School hired respondent Doreatha Walker as a third grade teacher. She had been on the job about 5 months when she complained to the principal that something in her classroom, perhaps mold, was making her and the children sick. The School refused to move the class to another room. On March 27, Walker requested paperwork to submit a workers' compensation claim alleging that on March 24 she sustained injury as a result of the uncleanliness of the room in which she taught. Walker alleges that the Neighborhood Centers Director of Human Resources instructed her not to file a claim because a "workable solution" would be found. That weekend, Walker emailed her complaint to the Houston Health Department. She also wrote to the Texas Education Agency, asserting that the School had submitted falsified test scores to the Agency before Walker arrived, had not tested special-education students properly, and had not timely prepared individualized education plans for students with disabilities. The following week, the School terminated Walker's employment.9

*747Walker sued the School for violating the WBA by retaliating against her.10 The trial court denied the School's plea to the jurisdiction asserting immunity from suit, and the School appealed.11 The court of appeals concluded that the WBA's waiver of immunity for local governmental entities, including public school districts, covers open-enrollment charter schools and also that the CSA waives immunity from suit for WBA violations.12 The court focused on Section 12.1056(a),13 which states that "[i]n matters related to operation of an open-enrollment charter school, an open-enrollment charter school or charter holder is immune from liability and suit to the same extent as a school district".14 Neither this waiver nor the WBA's, the court held, was affected by Section 12.1058(c),15 which provides that "an open-enrollment charter school operated by a tax exempt entity ... is not considered to be a ... local governmental entity unless the applicable statute specifically states that the statute applies to an open-enrollment charter school."16 Accordingly, the court affirmed the trial court's order.17

We granted the School's petition for review.18 We begin by analyzing the WBA, then turn to the CSA and the recent amendments to it.

II

The Legislature adopted the WBA in 198319 amidst a growing sense throughout the country that "mismanagement in the public sector is inherently a matter [of] public concern, and that employees who disclose mismanagement deserve legal protection."20 So firmly was the Legislature of that view that the bill passed without debate or a dissenting vote in either house.21 The WBA prohibited a state or local governmental body, as defined in the statute, from suspending, terminating, or discriminating against "a public employee who reports a violation of law to an appropriate law enforcement authority if the *748employee report is made in good faith."22 The WBA gave public employees the right to sue for broad remedies: reinstatement, actual damages, back pay and benefits, exemplary damages, costs, and attorney fees.23 Surprisingly, at least in retrospect, the Director of the Legislative Budget Board reported that "[n]o fiscal implication to the State or units of local government is anticipated."24

Six years later, George Green, an architect employed by the Texas Department of Human Services ("DHS"), reported to his superiors what he believed to be a pattern of fraud and corruption among agency procurement officers.25 Seeing that he was ignored, he took his concerns to the House Budget Oversight Committee for Human Services.26 DHS then began to scrutinize Green's employment history and found that he had once charged a 13¢ personal long distance call to the agency and that he had once left work for a physical therapy session he could not show he attended.27 DHS terminated Green,

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Neighborhood Centers Inc. v. Doreatha Walker, 544 S.W.3d 744 (Tex. 2018).

544 S.W.3d 744 (Neighborhood Centers Inc. v. Doreatha Walker) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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